Ripple has released a statement announcing it will lay out its side.
XRP fell after several exchanges denoted it and suspended trading in it. Ripple Labs issued a statement on Tuesday promising to respond to the US Securities and Exchange Commission’s (SEC) allegations against the company.
The statement begins with the following message:
„The public and the press have only heard the story from the SEC’s side. We will be filing our response in a few weeks to dispel these unsubstantiated allegations against Ripple.“
The statement said the SEC was using Ripple to bring down Bitcoin Machine the entire cryptocurrency industry in the United States. It also said the company had been asking for regulatory clarity on digital assets for years to no avail.
Some observers believe Coinbase’s decision to suspend XRP trading from January could be the end for the digital currency. Ripple, on the other hand, is set to embark on a multi-year legal battle with the SEC. Coinbase announced on Monday that it would suspend XRP trading. This was hardly surprising for Coinbase given its plans to go public.
XRP has fallen very sharply since the SEC filed the lawsuit against Ripple for alleged violations of securities laws. That prompted several exchanges to denotify XRP to avoid criticism from regulators. Ripple says the lawsuit has „already impacted countless innocent XRP traders who have no connection to Ripple“.
In the meantime, Ripple will continue to offer its products outside the US. The statement said:
„The majority of our customers are not in the US and all XRP volume is largely traded outside the US. There are clear rules for the use of XRP in the UK, Japan, Switzerland and Singapore, for example.“
As Cointelegraph previously reported, Ripple CEO Brad Garlinghouse believes his company will still do well regardless of how the SEC ultimately classifies XRP. That’s because more than 90 percent of RippleNet users are outside the country.
Few people within the crypto industry have defended Ripple against the SEC’s accusations. Coin Center, a D.C.-based think tank and cryptocurrency acceptance advocate, says it will not contradict the claim that XRP is a security.